Quantifying inequalities in the global employment landscape during the low-carbon transition

  • Can Wang
  • , Bo Wang*
  • , Thi Ngan An Vu
  • , Shuling Xu
  • , Weize Song*
  • , Zhaohua Wang*
  • , Zheng Li
  • *Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

Just transition is a central issue on the COP30 agenda. However, the impacts the energy transition has on the labor market, particularly its cross-country heterogeneity and economy-wide, multi-sectoral effects, remain insufficiently quantified. Here, we use the E3ME-FTT model to assess the spatial and temporal patterns of global employment shift during the transition. We find a net increase of 14.59 million jobs globally by 2050, representing a 0.4% increase, primarily driven by clean energy expansion. Job losses in fossil fuel extraction amount to 15.89 million and fall disproportionately on lower-skilled workers. New roles demand significantly higher average skill levels than those being displaced. At a skill similarity threshold of 0.95, up to 83.6% (5.1 million) of workers face reemployment barriers. Regionally, fossil-fuel-dependent and low-income economies exhibit higher employment sensitivity to the low-carbon transition. These findings reveal structural bottlenecks in labor reallocation, underscoring the need for targeted policies to address skill mismatches and regional disparities.

Original languageEnglish
Article number100120
JournalNexus
Volume3
Issue number1
DOIs
Publication statusPublished - 17 Mar 2026
Externally publishedYes

Keywords

  • E3ME-FTT
  • employment shifts
  • low-carbon transition
  • regional inequalities
  • skill mismatch

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